Clarksville offers a unique opportunity to investors with home prices averaging at almost 17% below the national average. Just an hour outside of Nashville, Clarksville has plenty to offer alongside an affordable cost of living.
What are the best ways for investors to profit off of this burgeoning real estate market? How will high interest rates impact your ability to build your portfolio?
Read on to learn everything you need to know about investing in Clarksville real estate in 2024.
Property Values Are Rising
Before the pandemic, the average home value in Clarksville had yet to crack $200,000. In 2024, the average home is selling for just over $300,000.
Though there was a slight dip last year as pandemic-fueled inflation stabilized, property values in Clarksville should continue to increase year over year. If and when you decide to sell, turning a profit won't be hard.
Your Budget Can Still Go Far
Though we're seeing a drop in interest rates this year, it's unlikely that they'll dip below 5%. As a result, many investors have slowed down on portfolio growth. Their capital isn't going as far as it used to and the promise of a quick sale has faded.
That said, a city like Clarksville is a great place to invest when interest rates are high. Though property values rise year over year, you're still looking at affordable housing in 2024. The same can't be said for neighboring cities like Nashville or Memphis.
Rental Units Are in High Demand
If your concern is the slowdown in home sales caused by inflation and high interest rates, consider a different approach in Clarksville. As the population grows faster than available housing, rental units see high demand. Diversify your portfolio with rental properties and plan to sell in the future.
What if you don't live in the area or don't have time to manage a rental property? This is where full-service property management comes into play. The right property managers will turn your rental properties into a source of passive income.
Residential Real Estate Is Just the Beginning
Another way to diversify your real estate portfolio is to invest in commercial real estate. In today's market, commercial real estate is facing an interesting shift that can work to your benefit.
As companies continue to navigate their work-from-home policies, some types of commercial real estate are facing a price slump. While you may face temporary vacancies, you stand to profit from low purchase prices and a potential return-to-office boom.
Take Advantage of the Clarksville Real Estate Market
Many investors are starting to question their role in the real estate market as prices and interest rates fluctuate. While this may not be the easiest time to flip and sell properties, it's a great time to rent out properties. With its population boom, Clarksville has a lot to offer when it comes to rental property investments.
Need help turning your rental portfolio into a source of passive income? PMI Clarksville offers customizable property management services so you can get as much or as little help as you need. Contact us to learn more or get a free rental valuation.
